stockmarketwalk Ottawa plans to return a repaired turbine to Germany that is needed for the Nord Stream 1 gas pipeline. The exemption could help to ensure continued flows of energy until Europe can end its dependency on Russian gas.
The Canadian government said in a statement on Saturday it was issuing a “time-limited and revocable permit” to exempt the return of turbines from its Russian sanctions to support.
Gazprom cut capacity on the Nord Stream 1 pipeline from Russia to Europe to just 40% of usual levels last month. Russia last month cited the delayed return of the equipment being served by Siemens Energy in Canada. The Kremlin said on Friday it would increase gas supplies to Germany if the turbine was returned. The equipment is important for maintenance work.
The Canadian government – which has been pressured by Germany to somehow return the turbine – said
absent a necessary supply of natural gas, the German economy will suffer very significant hardship and Germans themselves will be at risk of being unable to heat their homes as winter approaches.
The situation was not clear how long it would take for the turbine to be returned. Additionally, Siemens Energy did not immediately respond to a request for comment.
The turbine can be delivered to Germany first, which will then send it to Russia’s Gazprom. In addition to the special permit for the turbine, Canada said it would expand sanctions against Russia’s energy sector to include additional sectors, industrial manufacturing. The government said the new sanctions
will apply to land and pipeline transport and the manufacturing of metals and of transport, computer, electronic and electrical equipment, as well as of machinery,”
Ukraine expressed concern that this precedent “will lead to the weakening of the sanctions regime imposed on Russia“. But Ottawa confirmed the precedent does not change on the support of Ukraine’s sovereignty and territorial integrity.
Source: Reuters
